Shoppers spent more money in May than they did in April, but just barely amid concerns about still-high inflation and increased interest rates.
According to statistics released by the Commerce Department, retail sales increased just 0.1% in May, lower than what economists had reportedly been expecting. April sales were revised downward — a 0.2% decline, from unchanged, while sales rose 0.6% in March and 0.9% in February.
Not counting gas prices and auto sales, retail sales rose the same amount. Excluding sales from gasoline, whose prices have been falling, sales were up 0.3%, the Associated Press reported.
At restaurants, the lone service category tracked in the monthly retail sales report, sales fell 0.4% in May, according to the AP.
Sales at clothing and accessory stores rose 0.9%, while electronics and appliance stores posted a 0.4% gain. Online sales rose 0.8%. But business at building material and garden supplies fell 0.8%. And sales at gas stations were down 2.2%.
The national average price for a gallon of unleaded gasoline was $3.45 as of Monday; a month ago, it was $3.59, AAA said.
Target, Walmart and other chains have rolled out price cuts — some permanent, others temporary, heading into the summer months.
Earlier this month, the government said American employers added 272,000 jobs in May, accelerating from April and an indicator that companies are still bullish enough in the economy to keep hiring despite stubbornly high interest rates. Federal Reserve officials said last week that, while inflation has fallen closer to their 2% target level recently months, they still expect to cut their benchmark interest rate just once this year.
